Companies and Brands

What to Expect From Harley-Davidson Earnings

Before markets open Tuesday morning, Harley-Davidson Inc. (NYSE: HOG) is scheduled to report third-quarter results, and analysts expect a seventh consecutive quarterly beat. Consensus estimates call for earnings per share (EPS) of $0.78 on revenues of $1.21 billion, beating the year ago totals of $0.69 in EPS and revenues of $1.13 billion.

The motorcycle maker’s stock currently has consensus rating of Hold and a consensus price target of $65.23, according to Thomson/First Call. Some recent ratings announcements include:

  • DA Davidson cut the stock from Outperform to Sector Perform in July.
  • BMO Capital Markets raised its rating to Outperform and raised its price target from $73 to $76 a share in July.
  • RBC Capital set a rating of Outperform on the stock and lifted its price target from $63 to $66 in June.
  • Zack’s raised its rating from Hold to Buy and set a price target of $68 in August.
  • Vetr’s crowd-sourced price target is $62.71, with Buy ratings accounting for about two-thirds of all ratings.

The company has recalled a total of about 312,000 bikes so far in 2015, up from 210,000 in all of 2014, according to a report at The Wall Street Journal. In the previous 10 years, the company averaged about 94,000 recalls a year. Recalls have cost the company about $10 million on average in each of the past three years.

The company said in July that it expects to ship 54,000 to 59,000 motorcycles in the third, compared to 50,670 motorcycles shipped in the year-ago period, and continues to expect full-year 2015 operating margin of approximately 18% to 19% for the motorcycles segment. Full-year sales were forecast at 276,000 to 281,000 motorcycles worldwide.

Shares traded up less than 2% midday Monday, at $56.10 in a 52-week range of $50.64 to $70.41.

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